The Government had hitched the country to the chariot of globalisation, Mr Trevor Sargent (Green Party, Dublin North) said in his response to the Budget. The increased dependence on "long-haul exports" would leave the economy in a vulnerable position relative to increased oil prices. Even the productive agricultural sector was dependent on the increased usage of fossil fuels, resulting in increased pollution, he said.
Mr Joe Higgins (Socialist, Dublin West), said hydrocarbon taxes would mean increased costs for working people who needed their cars to get to work. But while the Government had reduced fuel taxes they should have "hit hard" at air pollution being caused by the increased traffic in our cities. A major emphasis on public transport was called for, to carry goods and passengers. This was the best way to cut down on fossil fuel use and the pollution going into the air.
The Dail voted to reduce the price of diesel by 7.26 pence including VAT from midnight last night and the price of unleaded petrol by 2.4 pence including VAT. Introducing the first financial resolution the Tanaiste, Ms Harney, said this would have the effect of reducing the Consumer Price Index (CPI) by 0.2 per cent.
She added, however, that the Government would shortly seek EU approval for a different VAT rate so that in future only low sulphur diesel would have lower VAT. Labour's Environment spokesman, Mr Eamon Gilmore, said it was ironic the Minister who was responsible for effectively getting rid of Dublin's smog was introducing such a resolution. This was from the Government that was "warning us we are going to have to change our ways and talked of introducing a green tax". The Government should have encouraged the introduction of low sulphur into the Irish market and the development of engines which were more efficient, said Mr Denis Naughten, the Fine Gael spokesman on enterprise: "I had hoped that the Minister would address that." He welcomed the reductions on unleaded petrol and diesel, and the improvements that would benefit the road hauliers. He called on the Tanaiste, to deal with the controversial "Brit disc" issue which identifies non-British hauliers in the UK.